Advice Needed: Remortgaging in 2026, New Car & Kitchen Remodel – Best Financial Strategy?

Kvotheraven · 27 February at 10:06PM

Hi everyone,

I’d love some advice on a financial situation I’m currently facing.

My mortgage is due for renewal in August 2026, and I’m trying to make the best financial decisions between now and then. Recently, our family estate died unexpectedly and we need to replace it, and we’re also hoping to remodel our kitchen (we live in a 1930s house and it's literally not been done since 1980s!). I have a young family and we are struggling with the doors/floor/cabinets falling apart - and now no car either! Naturally, both of these will come with significant costs.

My Situation:

• Income: c.£65,000 per year.

• Mortgage Renewal: August 2026.

• Car Replacement: My company offer salary sacrifice with the Electric Car Scheme (https://www.electriccarscheme.com/) and I am considering salary sacrifice for an electric vehicle at around £300-400 per month, or alternatively, taking out a loan to purchase a car outright.

• Kitchen Remodel: Likely cost of £15,000 to £20,000 - which would require a loan.

My Options:

1. Salary Sacrifice for the Car (c£400/month) + Loan for the Kitchen (£15,000-£20,000):

• Would reduce my gross salary to £60,200 (would this also help with child benefit repayments?)

• Avoids adding a large loan to my personal debt, but I’m unsure how much the reduced salary might affect my remortgaging options next year.

2. Take Out a Larger Loan for Both the Car and Kitchen (Around £30,000-£40,000):

• Keeps my gross income at £65,000, but significantly increases my personal debt.

• Monthly repayments could exceed £800, which I worry might negatively impact my affordability when remortgaging.

My Concerns:

• How will a salary sacrifice affect my mortgage affordability when I renew in 2026?

• Would a larger loan significantly reduce my remortgage options or the rates I could get?

• What would you do in my situation?

Any insights, experiences, or suggestions would be greatly appreciated!

Thanks so much

silvercar · 27 February at 10:44PM

If you stick with the existing mortgage lender, you won’t have to pass any financial assessment. So you could then choose whichever option costs you less.